Reliable Data Services (NSE:RELIABLE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Reliable Data Services Operating Margin % Related Terms
Reliable Data Services Operating Margin % Historical Data
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The historical data trend for Reliable Data Services's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RELIABLE vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Reliable Data Services's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reliable Data Services Operating Margin % vs Software Industry
For the Software industry and Technology sector, Reliable Data Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reliable Data Services's Operating Margin % falls into.
Reliable Data Services Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Reliable Data Services's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reliable Data Services (NSE:RELIABLE) has a Operating Margin % of 4.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Reliable Data Services and its competitors. This is 64% below median its historical median of 11.40. Over the past decade, Reliable Data Services' Operating Margin % has ranged from 7.34 to 18.07. According to the industry distribution chart, Reliable Data Services ranks #1032 out of 2813 companies in the Software industry, placing it in the top 36.7%.
Is Reliable Data Services' Operating Margin % too high?
Reliable Data Services' current Operating Margin % of 4.15% is 64% below median its 10-year median of 11.40. Over the past 10 years, this metric has ranged from a low of 7.34 to a high of 18.07. The Software industry median Operating Margin % is 3.88. Reliable Data Services' value of 4.15% is 7% above this industry median. Based on the distribution chart, Reliable Data Services ranks #1032 out of 2813 companies in the Software industry, which is above the industry midpoint. Overall, Reliable Data Services has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Reliable Data Services' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reliable Data Services ranks #1032 out of 2813 companies for Operating Margin %. This puts Reliable Data Services in the upper half of its industry. The industry median Operating Margin % is 3.88. Reliable Data Services' value of 4.15% is 7% above this benchmark. Historically, Reliable Data Services' own Operating Margin % has ranged from 7.34 to 18.07 over the past decade. While the company's 10-year median is 11.40 vs. the industry median of 3.88, Reliable Data Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,813 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reliable Data Services's current Operating Margin % of 4.15% is 7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Reliable Data Services and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliable Data Services's current Operating Margin % is 4.15%, which is 64% below median its own 10-year median of 11.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliable Data Services stock overvalued right now?
Based on GuruFocus' analysis, Reliable Data Services (NSE:RELIABLE) is currently considered Fairly Valued. The stock's GF Value™ is ₹148.10, compared to a current price of ₹145.08 — trading 2% below its estimated fair value. The current Operating Margin % is 4.15%, which is 64% below median its 10-year median of 11.40 and 7% above the Software industry median of 3.88. Reliable Data Services' overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Reliable Data Services (NSE:RELIABLE), the current Operating Margin % is 4.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Reliable Data Services (NSE:RELIABLE) Overvalued in 2026?
Based on GuruFocus' analysis, Reliable Data Services stock appears to be undervalued.
The current stock price of ₹145.08 is trading 2% below its estimated GF Value™ of ₹148.10.
GuruFocus considers Reliable Data Services to be Fairly Valued.
Key valuation signals for NSE:RELIABLE:
Operating Margin %: 4.15% (64% below median its 10-year median of 11.40)
GF Value™: ₹148.10 vs. price of ₹145.08 (2% below fair value)
Industry Position: 7% above the Software median (#1032 of 2813)
No single metric tells the full story. See the NSE:RELIABLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliable Data Services Ltd is an India-based company that provides IT and IT-enabled services to various banking, financial services, and other manufacturing industries in the field of back-office processing, front office follow-ups, and management services. The business segments comprises of which are Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance. The Banking, Financial Services and Insurance segment derives majority of its revenue for the company. The company provides transaction processing services and payroll services as well.
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